> Does it make sense to spend $4K (for example) on legal fees for a deal where I am getting an $8K investment. These aren't the actual figures, but I imagine th

> Does it make sense to spend $4K (for example) on legal fees for a deal where I am getting an $8K investment. These aren't the actual figures, but I imagine the legal fees would be at a similar ratio. Does it make sense to risk your startup over an $8k investment? > But I am simply looking at the economics of it. Are you looking at economics or merely comparing two numbers, whether or not they're the right numbers? The cost of doing it wrong is not limited by the amount invested, let alone the amount of money you "save". Yes, there's some chance that you might not screw it up, or that your company might fail anyway, rendering the whole thing moot. How much is the additional risk actually worth?